Summarized financial position statement of 3 companies as at 31 Dec 2014 wasas follows:J(K) ltdK(C) ltdLes ltdSh 000sh '000sh 000Tangible fixed assetsInvestment in subsidiary972843405jin K (700,000 shares)356kin L(300,000 shard)229Net current assets2052291641,5331,320570Ordinary shares of sh 1Per share1,2001,000400Reserves profit & lossOther233200100100120701,5331,320570At the date of acquisition (1st April 2014) by J of its holdings K profit andloss account had a Credit balance of sh 100,000 and other reserves sh 50,000. It Kacquired its holding in K ltd on the same day being a newly established company.REQUIRED:Consolidated balance sheets of the J group as at 31 Dec 2014

To prepare a consolidated balance sheet for the J group as of 31 December 2014, we need to…

Answered: Summarized financial position statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 1 a) Given below are the statements of financial position of H and its subsidiary S as at 31 December 2021. Ordinary shares of RM1.00 each Share premium Revaluation reserve Retained profit Liabilities Inventory Accounts receivable H RM 120,000 250,000 70,000 100,000 Fixed Assets - Land 300,000 Investment in S - 150,000 ordinary shares at cost 250,000 RM Share premium 50,000 Revaluation reserve 15,000 Retained profit 20,000 S RM 500,000 200,000 100,000 50,000 40,000 30,000 50,000 20,000 50,000 50,000 740,000 350,000 i. NCI is not measured at fair value. H acquired 150,000 of the ordinary shares of S on 1 January 2017 when the balance in S's accounts were: 740,000 350,000 Required: Prepare the consolidated statement of financial position of H and of its subsidiary S as at 31 December 2021 where: ii. NCI is measured at fair value where the fair value of S's shares on 1 January 2017 was RM1.45 per share and on 31 December 2021 was RM1.80
Following are the Balance Sheets of A Ltd. and its subsidiaries B Ltd. and C Ltd. as on 31st March, 2016: C Ltd. A Ltd. $ B Lta. $ $ I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital Shares of 100 each 12,50,000 | 10,00,000 6,00,000 (b) Reserves and Surplus : 1,80,000 1,60,000 1,00,000 20,000 72,000 51,000 Reserves Surplus Account (2) Current Liabilities Sundry Creditors 1,03,000 1,20,000 Total Equity and Liabilities 16,93,000 | 12,40,000 7,23,000 II. Assets (1) Non-current Assets Fixed Assets 2,80,000 5,50,000 3,75,000 (2) Current Assets 5,30,000 Investments at Cost Stock in Trade 10,30,000 1,20,000 2,63,000 Sundry Debtors 1,60,000 3,48,000 Total Assets 16,93,000| 12,40,000 7,23,000 (a) The break-up of investments, which were all made on 30th September, 2015, is as under: (i) A Ltd. held- 7,500 shares in B Ltd. at a cost of 8,50,000 and 1,500 shares in C Ltd. at a cost of 1,80,000. (ii) B Ltd. held- 4,000 shares in C Ltd. at a cost of 5,30,000. (b) (i) Sundry…
As of December 31, 2018, Sadaf Oman Company reported assets of RO 3,700,000, share capital of RO 990,000 and retained earnings of RO 1,600,000. Total liabilities reported on the statement of financial position as of December 31, 2018 is Select one O a RO 1,100,000. Ob RO 1350,00. OC RO 1,110000. O d. RO 1,240,000.
2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets Land P195,000 1,320,000 660,000 525,000 Building Equipment Total Assets P2,700,000 Liabilities Ordinary Shares, P5 par Share Premium Retained Earnings Total Equities P525,000 900,00 825,000 450,000 P2,700,000 All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur's outstanding shares for P3,000,000. The non-controlling interest is measured at fair value. Required: a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. b. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling…
The extract of statement of financial position for the year ended 30 June 2022 for Pears Ltd and Sapodille Ltd are as follows: Extract of statement of financial position for the year ended 30 June 2022 Equity and liabilities Pears Ltd Sapodille LtdEquity $ $ Share capital ($ 1 Each) 487,500 420,000Share premium 300,000 -Retained earnings 262,500 337,500LiabilitiesNon current liabilities 187,500 75,000Current liabilities 150,000 15,000 On 01 July…
Consider the following premerger information about Firm X and Firm Y: 222 Total earnings Shares outstanding Per-share values: Market Book Firm X $92,000 49,000 Assets from X Assets from Y Goodwill Total Assets XY LA GA Firm Y $20,500 14,000 49 $ 18 $ 20 7 zursurch of M www.am entrat human pa grawe anakmuom 2 Hoe o Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $7 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets P195,000 1,320,000 660,000 525,000 P2,700,000 Land Building Equipment Total Assets P525,000 Ordinary Shares, P5 par 900,00 825,000 450,000 P2,700,000 Liabilities Share Premium Retained Earnings Total Equities All the assets and liabilities of Arthur were assumed to approximate their fair val- ues except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Cor- poration acquired 80% of Arthur's outstanding shares for P3,000,000. The non- controlling interest is measured at fair value. Required:
Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000 Liabilities and Shareholders’ equity Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51. Logan’s July 1 balan ce sheet after the quasi-reorganization should show total assets ofa. P 4,000,000b. P 2,500,000c. P 4,375,000d. P 3,875,0002. The balance in additional paid in capital after the quasi-reorganization on July 1 is:a. P 750,000b. P 2,000,000c. P 500,000d. P-0-3. Logan’s deficit after the quasi -reorganization on July 1,2011 should be:a. P 750,000b. P 250,000c.…
Part B Given below is the statement of financial position of PQR Bhd as at 31 December 2015. Statement of Financial Position of PQR Bhd as at 31 December 2015 RM Non-current assets Current assets (except cash at bank) Cash at bank NIK/GAN BAC1634 page 3 of 6 FINANCIAL ACCOUNTING AND REPORTING I Issued share capital 40,000,000 Ordinary shares of RM1 each Share premium Retained profits Non-current liability 20,000,000 6% redeemable preference shares Current liabilities 70,000,000 15,000,000 50.000.000 135.000.000 Continued... March 2016 40,000,000 4,000,000 50,000,000 24,000,000 17,000,000 135,000,000 PQR redeemed all the preference shares at a premium of 20 percent on 31 December 2015. It issued 10 million ordinary shares at RM3 per share to facilitate the redemption and the balance through profits available for dividends. Required: You are required to prepare the journal entries to record the above transactions.
X CO. Ltd. agrees to acquire, as a going concern, the business of Y Co. Ltd. on the basis of vendor's Balance Sheet at 31* March, 2016 which is as follows: 1. Equity and Liabilities 2$ (1) Shareholders' Funds (a) Share Capital : Authorised Capital : 25,000 Shares of $50 each 12,50,000 Issued Capital : 20,000 Shares of $50 each 10,00,000 Called-up Capital : 20,000 Shares of $50 each, $30 called up 6,00,000 (b) Reserves and Surplus: Reserves Fund 1,25,000 Surplus Account 60,000 (2) Current Liabilities Creditors 75,000 Total Equity and Liabilities 8,60,000 II. Assets (1) Non-current Assets Fixed Assets : Freehold Property 2,50,000 Plant and Machinery 50,000 Investment : 6% Govt. Papers 10,000 (2) Current Assets Stock 3,00,000 Debtors ($ 2,30,000 –10,000 Provision) 2,20,000 Cash at Bank 30,000 Total Assets 8,60,000 X Co. Ltd. took over all the assets and liabilities of the vendor company, subject to the retention of $15,000 cash to provide for cost of liquidation, income-tax etc. and to…
The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…
On January 1, 20x4, Park Corporation and Strand Corporation and their condensed balances sheet are as follows:Particulars Park Corp Strand CorpCurrent Assets P70,000 P20,000Non-current assets 90,000 40,000Total assets P160,000 P60,000Current liabilities P30,000 P10,000Long-term debt 50,000 --Stockholder’s equity 80,000 50,000Total liabilities and equity P160,000 P60,000On January 2, 20x4, Park Corporation borrowed P60,000 and used the proceeds to obtain 80% of the outstanding common shares of Strand Corporation. The P60,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31, 20x4. The excess fair value of the investment over the…

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